Under which circumstances could the marginal cost and average variable cost curves be one and the same?
What will be an ideal response?
This would only be true if the marginal cost curve was constant. That would mean that total variable cost would change by the same amount with each additional unit of output produced.
You might also like to view...
If there is complete crowding out as a result of an increase in government spending there will be
A) a decrease in aggregate demand. B) no change in aggregate demand. C) an increase in aggregate demand. D) a downward movement along the aggregate demand curve.
Kara voluntarily quit her job as an insurance agent to return to school full time to earn an MBA degree. With degree in hand, she is now searching for a position in management. Kara presently is:
A. cyclically unemployed. B. structurally unemployed. C. frictionally unemployed. D. not a member of the labor force.